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How much inequality can we explain? A methodology and an application to the USA (Now published in The Economic Journal, vol.105, no.429 (March 1995), pp. 421-430)

Author

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  • Frank A Cowell
  • Stephen P Jenkins

Abstract

We develop two simple measures of how much inequality is explained by individual population characteristics or groups of characteristics, analogous to R2 in regression analysis. We investigate the measures' empirical implementation using several alternative theoretically consistent approaches to inequality decomposition. Results are illustrated using US PSID income data.

Suggested Citation

  • Frank A Cowell & Stephen P Jenkins, 1994. "How much inequality can we explain? A methodology and an application to the USA (Now published in The Economic Journal, vol.105, no.429 (March 1995), pp. 421-430)," STICERD - Distributional Analysis Research Programme Papers 07, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    • Handle: RePEc:cep:stidar:07
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    Cited by:

    1. Río, Coral del, 1997. "An inequality decomposition method which minimizes equivalence scales contamination problems," UC3M Working papers. Economics 6038, Universidad Carlos III de Madrid. Departamento de Economía.

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    Keywords

    Inequality; decomposition;

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